Bill > HB1201

This bill aims to address insurance challenges for condominiums in Hawaii by establishing tax credits for insurers providing comprehensive property coverage. Specifically, the bill creates a tax credit for insurers that offer full property insurance (covering windstorm, hurricane, hail, flood, fire, and localized perils) amounting to 100% of the insurable value for condominium owners and associations. Insurers can claim a 20% tax credit on the insurance premium tax, with an additional 10% credit for insurers incorporated in Hawaii. The total tax credits are capped at $50,000 per year, and each tax credit can only be claimed once per structure. The bill was motivated by the finding that many aged condominium buildings struggle to obtain insurance, which impacts homeowners' ability to buy, sell, or obtain mortgages. To claim the credit, insurers must apply for a tax credit certificate from the commissioner, provide required documentation, and file claims within 12 months of the end of the taxable year. The tax credits will become applicable for taxable years beginning after December 31, 2025, offering a potential solution to help stabilize the condominium insurance market in Hawaii.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1201&year=2025